Selected operating data for two divisions of Outback Brewing, Ltd., of Australia

Question

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below Division New South Sales Average operating assets Net operating income Property, plant, and equipment (net) Queensland Wales $2,176,000 $3,445,000 640,000 $ 650,000 250,240 $ 275,600 $ 264,000 S 214,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.) Margin Turnover ROI Queensland division New South Wales division 2. Which divisional manager seems to be doing the better job? O Queensland division O New South Wales division

Explanation / Answer

Answer to 1

Answer to 2

As ROI of queensland is better than new south wales therefore manager of queensland is doing better.

Particulars Queensland New South Wales Net Income (A) 250240 275600 Turnover (B) 2176000 3445000 ROI (A/B) 11.50% 8.00%

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